n is the practice of organizing your content in such a way that every unique piece has one, and only one, URL. If you leave multiple versions of content on a website (or websites), you might end up with a scenario like the one on the right: which diamond is the right one?
Discount Gems
Single Gems
Instead, if the site owner took those three pages and 301-redirected them, the search engines would have only one strong page to show in the listings from that site.
When multiple pages with the potential to rank well are combined into a single page, they not only stop competing with each other, but also create a stronger relevancy and popularity signal overall. This will positively impact your ability to rank well in the search engines.

Canonical Tag to the rescue!

A different option from the search engines, called the Canonical URL Tag, is another way to reduce instances of duplicate content on a single site and canonicalize to an individual URL. This can also be used across different websites, from one URL on one domain to a different URL on a different domain.
Use the canonical tag within the page that contains duplicate content. The target of the canonical tag points to the master URL that you want to rank for.
The Inner Workings
<link rel="canonical" href="http://moz.com/blog"/> This tells search engines that the page in question should be treated as though it were a copy of the URL http://moz.com/blog and that all of the link and content metrics the engines apply should flow back to that URL.
From an SEO perspective, the Canonical URL tag attribute is similar to a 301 redirect. In essence, you're telling the engines that multiple pages should be considered as one (which a 301 does), but without actually redirecting visitors to the new URL. This has the added bonus of saving your development staff considerable heartache.
For more about different types of duplicate content, this post by Dr. Pete deserves special mention.
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